Guest Column: The Liberating Truth about the Income Tax

Put CtC and ‘educated filing’ in your Christmas stocking this year and from now on
By Kevin Flanagan

Editor’s note: Still awaiting edits and approval from Mr. Flanagan… and when they arrive, I’ll incorporate. This was pulled from one of the CtC (ref. Pete Hendrickson’s watershed book, Cracking the Code) forums and I haven’t seen a more succinct and to-the-point presentation yet. If I’m the ‘man on the street,’ I’m hooked. This one hits the SWEET SPOT. [Handy single-sheet PDF version for handing to those you like located here.]
— brw

Go to LostHorizons (dot) com and get the book Cracking the Code: The Fascinating Truth About Taxation  in America. Best $33.95 you will ever spend.

Learn how you can LEGALLY keep all of your property every year (which is what the framers of the Constitution intended, that a man’s labor would never be violated).

The federal income tax is actually written as an excise tax—because a direct tax without apportionment would be unconstitutional [the 16th amendment did not change this]. Excise taxes can only target narrowly defined activities and must be avoidable. Think cigarette tax, if you don’t want to pay it, then don’t smoke.

The activity that the federal income tax targets is the exercise of Federal Privilege. To put it simply and bluntly, the only people who technically owe federal income tax are the ones who have federal earnings; i.e. working for or contracting with the federal government or one of their federal corporations (post office, FDA, etc) or instrumentalities (railroads, national banks, etc.), or receiving federal payments such as Social Security (though most SS benefits are typically specifically excluded from income tax on the 1040). This has been true ever since the first income tax was enacted by Abraham Lincoln in 1862.

The great scam of the IRS was in convincing all companies, not just those federally connected, to begin withholding during WWII—before then, less than 4% of the American adult population paid federal income taxes (Congressional reports from that time period detail this). Most companies complied, not knowing they weren’t legally/technically required to do so.

So now when you receive a W2 or 1099, understand that it is actually a legal document that declares that the money you received for the year was federally connected income. 80% of the time this is false. But once its been filed with the IRS the burden is on you to refute it[1] (and once you refute it the burden is on them to prove that it is federally connected, which they can’t).

Legal scholar Pete Hendrickson discovered this loophole (for lack of a better word) in the late 1990s when the IRS digitized the entire code and made it searchable (dumbest thing they ever did). Before that it was literally impossible for any one person or group to put together the pieces.

His book came out in 2003 and since then 10s of thousands of Americans have been legally reclaiming more than two billion dollars of their property incorrectly withheld from them. This includes, get this, all FICA taxes as well as income taxes. (unfortunately you can only go back 3 years).

So when you hear someone say, “The income tax is unconstitutional,” that is false. As written it satisfies the constitutional requirements for federal taxation because it is written as an excise tax. But as Pete says, the IRS is a genius work of legal FICTION… because most of us do not, and will not ever, owe federal income tax. They have literally been stealing your property (‘Theft by Deception’) your entire adult life.

Learn how to fight back legally, using their own rules against them. They are terrified that this information will go mainstream. Pete and his wife have been terrorized for years, with both doing jail time for bogus convictions—NOT for tax evasion because the IRS knows what he’s doing is perfectly legal.

I’m in the process of doing this now and I can tell you the IRS will not give up easily. But in the end they do give up because the law is on my side—their own law, Title 26 of the US Code (tax law).

If you really want to see the Federal Reserve ended then do your part to starve the beast. The IRS is nothing more than the strong-armed collection arm of the fed. Help shrink the federal government back to its originally intended size and scope.

Educate yourself on the truth. Use your own discernment. Man up for the law. [The process of ‘filing educated,’ that is in accordance with fact when your earnings are not income, is straightforward. In general, you will receive your property (refund check) without hassle, but DO expect delay and bogus distraction-fear tactics in a small number of cases. The Losthorizons site contains many tools to help.]

[1] There is actually a mechanism in the IRS code sections that allows you to do this [refute, after your return has been filed, that your earnings are income]. But it’s buried deep in the 3.5 million words of legal soup.

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